Skellmax posts $12.8m profit

Recently listed Skellmax Industries, incorporating rubber icon Skellerup and pump-maker Flomax, posted an annualised net profit of $12.8 million for the year ended June.

Skellmax's annualised profit was 1 per cent ahead of the prospectus forecast, of which $12.5 million was attributable to former owner Viking Pacific Holdings.

When it floated in June, Skellmax's 100 million shares listed at $1.15. They last traded at $1.08.

Skellmax's total assets were $64.6 million, about $1.46 million lower than the forecast, and total liabilities stood at $46.8 million, including $16.8 million in current liabilities and borrowings of $30 million.

The borrowing was a loan facility to partly fund the acquisition of Skellerup and Flomax from Viking Pacific in June.

Net assets were $17.7 million.

The result for the period between the company's listing on June 19 and the end of the financial year, June 30, was a net profit of $377,000.

Skellmax's total revenue for the nine business days of operating as one company was $4.68 million, and the pre-tax profit was $484,000.

Earnings per share were 0.38c.

Chairman Keith Smith said that Skellerup Industries, the rubber and agricultural consumables division, was unlikely to be affected by the prospect of lower payouts by New Zealand dairy companies. Skellerup derived about half of its dairy-related revenues from overseas markets.

The dairy industry vacuum pump division, Flomax, had further significant growth prospects because of cost-competitive manufacturing, an established customer distribution network and a recognised brand, Smith said.

No dividend would be paid.

Ebit for the year ended June was $19.2 million, compared with the prospectus forecast of $18.9 million, and up $3 million on the previous year's pro forma result.

Cashflow was $14.8 million for the year, up by $1.93 million on forecasts.

- NZPA